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ZOVATOOL

Rent vs Buy Calculator

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Rent

Buy net cost
$128,555.49
Rent net cost
$48,074.59
Winner
Renting
saves $80,480.90

Buying

Monthly payment (PITI+M)$2,962.30
Home value in year$491,949.55
Remaining mortgage$291,671.73
Equity$200,277.82

Renting

Total rent paid$183,899.09
Investment portfolio$215,824.50

How to use the Rent vs Buy Calculator

  1. Enter home price, down payment %, mortgage rate, property tax %, insurance and maintenance.
  2. Enter current monthly rent, expected rent increase and investment return on the down payment.
  3. Set the horizon (how many years you plan to stay).
  4. Read the net cost of each path — buying wins on long horizons, renting wins on short ones.
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The five-year rule and why it exists

Buying costs 6–10% of home price in closing, agent fees and moving. Under 5 years, appreciation rarely covers it — renting wins.

The hidden cost of renting is opportunity: you skip both mortgage forced-savings and home appreciation. The hidden cost of owning is inflexibility.

This calculator invests the down payment at your chosen return when you rent. That is the honest comparison — most rent-vs-buy tools skip it and unfairly favour buying.